Statement by Pakistan in the TNC meeting
01st May 2006
Mr. Chairman,
We join others in thanking you and the Chairs of the negotiating groups for their factual reports. These reports clearly show that we have not moved much further than where we were at Hong Kong in December. It is indeed very regrettable. This is despite the fact that it has been clear for some time now as to who has to do what to enable us move forward. Unfortunately none of those took up this challenge and neither we were able to move in concert as Ministers had agreed to do at Davos.
Since we have a fairly good diagnosis of what is holding us back, it is clear that we would not be able to move unless we find a way to resolve those issues. Let me be more specific.
In case of Agriculture, there are two key issues. First, it is obvious that the offers we have on the table on market access are not sufficient and would have to be improved substantially to be able to move forward. Secondly, on Domestic Support, there will have to be actual cuts and not just paper cuts and all the major subsidizers have to do much more than what they have so far agreed to do. Through press reports, major players have been indicating their willingness to offer more but here in the negotiations they have not put forward any fresh proposals which could have helped move the process forward. Although we fully support the Reference Papers process initiated by Chair of Agriculture, we feel that this process could run aground if the key players do not indicate what they are willing to contribute in the key areas of market access and domestic support to move the process forward.
In NAMA also the pace of negotiations is rather slow but it is inching forward. We feel that enough progress has been made on the issue of calculating base rate for application of formula, but on the two other key issues of coefficients and flexibilities not, much progress has not been made because major economies are making unrealistic demands. While they are rather guarded about what they can offer on Agriculture market access and domestic support, their demands on Swiss formula coefficients to be in sight of each other are unrealistic. In fact, our proposals to have two coefficients of 6 and 30 for developed and developing countries were based on objective criteria and fully meet the ambition of Doha and also take some account of our development concerns. In fact through such coefficients developing countries would be contributing more than developed countries in terms of tariff cuts. However, in the final results there would not be an absolute harmonization of tariffs but some difference to enable them maintain some tariff rates for their industrial developments and as a source of much needed revenues.
On the issue of erosion of preferences, we feel that the recently organized seminar was very helpful in demystifying the extent of this problem. Research studies clearly shoed that the negative impact of liberalization is confined to 3 products and very few countries. Any attempt to find trade solutions for such a limited problem is like killing a fly with a hammer. Best way forward is to try to mitigate any hardship through an Aid for Trade mechanism.
In Services, we feel that since Hong Kong and after plurilateral process was started, there has been good progress. However, any ambitious outcome would depend upon the results achieved in Agriculture and NAMA.
In case of Rules area, although we have not seen any major flexibility from a major economy to close the loopholes in the agreement on anti-dumping, we do feel that an acceptable result could be achieved on the basis of many constructive proposals before the negotiating group. On transparency in RTAs we feel that good progress has been made and an agreement can be worked out. However, we are concerned that in the area of fishing subsidies we have not made adequate progress.
Mr. Chairman, it is obvious that any successful outcome of these negotiations would depend upon the leadership role of major players. So far they have not been very forthcoming. If they are really as committed as they were when the Round was launched, they need to move where they know they have to move.
Finally, Mr. Chairman we would like to assure you of our full support and do hope that what we could not be achieved by end April would be done by end June to enable us close the round by the end of this year.
